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According to the U.S. Department of Commerce, franchise businesses are exponentially more likely to succeed
than individual new start-ups, particularly if you look at the figures over a five or seven year period. According
to Department of Commerce figures, after seven years 91% of new franchises are still in business, as
compared to only 20% of individual new start-up businesses.
A 1999 study by the United States Chamber of Commerce found that 86% of franchises opened within the last
five years were still under the same ownership and 97% of them were still open for business
A US department of commerce study conducted from 1971 to 1997 showed that during that time less than 5%
of franchise businesses were closed each year.
Compare that to a US Small Business Administration study conducted from 1978 to 1998, which found that
62% of non franchised businesses closed within the first 6 years of their existence due to failure, bankruptcy,
etc.
The global security industry is a market in excess of $100 billion made up of tens of thousands of businesses
engaged in the protection of assets and prevention of loss. While once relegated to the sidelines of property
management, security increasingly falls under the purview of corporate IT budgets and is often a major
consideration of C-level executives. This shift is due in large part to an increase in crime rates, convergence of
building control technology with security functions and IT systems, and an increased focus on security
demonstrated by the US government through its massive reorganization which created the Department of
Homeland Security and subsequently appropriated billions of dollars of funds.
Industry analysts believe the security industry will grow at double-digit rates over the next five years, and we
are seeing strength and momentum in the market place to date in 2003. USBX' Integrators and Manufacturing
indices have both outperformed the S&P 500 in the year to date and numerous M&A transactions have taken
place indicative of the consolidation of a fragmented market. Additionally, certain transactions such as United
Technologies Corporation's purchase of Chubb Plc are portentous of the impending drive toward convergence
business.
The need to protect assets does never ceases, which makes the security industry recession resistant. Indeed, in
2002, the security industry outperformed the S&P 500 even as most corporations struggled during the difficult
economic times. Going forward, biometrics, emergency preparedness, security systems integration, alarm
monitoring and digital security are a
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2001-2006 The Top 100 Security Integrators increased their share of
business from
2.4 Billion to 6.65 Billion—Source SDM Magazine July 2007 |
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